REDISCOVER REAL ESTATE

Bank of Canada maintains overnight rate target at 1 per cent

Ottawa - The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

The global economic expansion is proceeding broadly as projected in the Bank’s April Monetary Policy Report (MPR), with modest growth in major advanced economies and robust expansions in emerging economies. 

The U.S. economy has grown at a slower pace than expected and continues to be restrained by the consolidation of household balance sheets and slow growth in employment. While growth in core Europe has been stronger than expected, necessary fiscal austerity measures in a number of countries will restrain growth over the projection horizon.

The Japanese economy has begun to recover from the disasters that struck in March, although the level of economic activity in that country will remain below previous expectations.  In contrast, growth in emerging-market economies, particularly China, remains very strong.

As a consequence, commodity prices are expected to remain at elevated levels, following recent declines.

These high prices, combined with persistent excess demand in major emerging-market economies, are contributing to broader global inflationary pressures.  Widespread concerns over sovereign debt have increased risk aversion and volatility in financial markets. full report -->>

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Home sales rise while prices ease

Home sales rose across Canada last month – except in Vancouver and Toronto – signalling that the country’s housing market remains resilient, the Canadian Real Estate Association said Friday.

Nationally, house sales rose 2.6 per cent in June from a month earlier, while the average resale price decreased slightly, by 0.9 per cent

“Stricter mortgage rules and declining affordability appear to be taking at least some momentum out of prices, a trend that could continue if the Bank of Canada resumes its tightening campaign in the fall,” BMO Nesbitt Burns Inc. economist Robert Kavcic said in a research note.

The national average sale price in June was $372,700, an increase of 8.7 per cent from a year earlier. While the figure continues to reflect sales in expensive Vancouver neighbourhoods, activity in those areas has been waning from levels reported in February and March, the association (CREA) said.

Sales in Vancouver dipped 1.7 per cent in June from May figures. “Property sales above $1-million in Vancouver West, West Vancouver, and Richmond now account for a smaller but still elevated share of national activity,” the report noted.

Many markets saw major sales gains in June, including Calgary, Montreal, Ottawa, London, Hamilton, and Victoria. Toronto’s market remained stable.

Earlier this week, Toronto-Dominion Bank economists described Vancouver as “the poster child for those individuals worried about a real estate bubble here in Canada.” They forecast that the market, which many worry is overheating, will cool with sales and prices on average decreasing by 15.2 per cent and 10.2 per cent, respectively, over the next two years. full story -->>

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Your market watch!

GTA REALTORS® Report June Resale Housing Market Figures

July 6, 2011 -- Greater Toronto REALTORS® reported 10,230 home sales through the TorontoMLS® system in June 2011 – up 21 per cent compared to June 2010. This number represented the third best June result on record behind 2007 and 2009. The number of transactions during the first six months of 2011 amounted to 48,189 – down by 4.5 per cent compared to the first half of 2010.

"The strong June result capped off an interesting first half of 2011," said Toronto Real Estate Board President Richard Silver. "The pace of sales was a bit sluggish at the beginning of the year, but rebounded in May and June. Because of the positive affordability picture, home buyers remained confident in their ability to purchase and pay for a home over the long term."

The average price for June transactions was $476,371 – a 9.5 per cent increase over June 2010. Through the first six months of the year, the average selling price was $467,169 – almost an eight per cent increase compared to the same period in 2010.

"While sales have been strong, we would be on track for a record number of transactions in 2011 if not for the decline in listings so far this year," said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis. "Tight supply meant more competition between home buyers and an accelerating annual rate of price growth in the second quarter." see full report

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Buying a Condo? Tips on Getting the Best Value

If you're a first-time homebuyer, a current homeowner looking to downsize or a parent considering buying a secondary property for kids moving for school, chances are you've considered condo ownership.

When looking for a condo, finding the best value is all in the combination of the place, the price and the monthly fees.  When calculating how much they will loan to you, mortgage lenders count half of your monthly fees, along with other factors such as property taxes and heat expenses.

Here are some tips to help condo-shoppers get the best value for their purchase:

1. Know what your fees cover.  Along with maintenance of the building and common areas, some condominiums will include part or all of your utilities or property taxes in your fees, while others keep them completely separate.

2. Check the reserve fund.  The corporation responsible for the condo development should have a reserve fund that's large enough to cover the cost of repairs to the building's common elements.  A status certificate (or Estoppel certificate in some provinces) will show any planned developments that could increase your monthly fees or require a special one time assessment.  You can find similar details in the condo corporation's annual meeting minutes.  

3. Think twice about upscale amenities.  Keep in mind that building features like pools, saunas, deluxe fitness areas or large common rooms typically require higher condo fees to cover the upkeep. Consider whether you'll really use these features enough to make the extra cost worthwhile.

4. Check the regulations.  Make sure you're aware of any bylaws governing your condo development that could affect your lifestyle. For example, bylaws may restrict household pets, gas barbecues, working from home or renting the unit to a tenant.

5. Consider your neighbours.  Is the building mainly occupied by owners, or renters? Residents who own and have a vested interest in the building may be more careful about upkeep.

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